265 Drilling Rigs Active as We Enter 2012

We’ll enter the 2012 with an Eagle Ford Shale drilling rig count of 265. With more than 210 of the rigs actively target the Eagle Ford proper, we’ve gone from Petohawk’s discovery well in 2008 to current levels in three years. We’ll enter 2012 at record development levels across much of the South Texas area.

Oil prices held a little below $100/bbl and natural gas prices are below $3 at the time of my writing. The January natural gas contract is bouncing around $3/mmbtu (Henry Hub) and the natural gas rig count in our area fell two rigs to a total of 93 rigs working. We reiterate our belief the Eagle Ford rig count will remain dependent on liquids prices.

The number of oil rigs working remained flat at 172. Horizontal wells account for activity from 244 rigs drilling and we have not injection or service wells being drilled.

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Drilling Rig Count by Operator

Operator Name

Prior Week

Current Week

Chesapeake

31

31

EOG Resources

24

23

Petrohawk (BHP)

15

16

ConocoPhillips (Burlington)

14

15

Lewis Petroleum

12

12

Anadarko

12

12

Pioneer Natural Res.

12

11

Marathon (Hilcorp)

11

11

Talisman

10

10

XTO (Exxon)

8

7

All Others

118

117

What is the Rig Count?

The Eagle Ford Shale Rig Count is an index of the total number of oil & gas drilling rigs running across a 30 county area in South Texas. The South Texas rigs referred to in this article are for ALL drilling reported by SmithBits and not solely wells targeting the Eagle Ford formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count and/or Smith Service Co’s (Schlumberger) Smith Rig Count.